Calon Segur Sold for 215 Million Dollars!

[Jeff Leve]

Chateau Calon Segur, the well-known Third Growth chateau from St. Estephe has been officially sold to the giant insurance firm Suravenir Insurance for 170 Million Euros. Depending on the exchange rate, this is close to 215 Million Dollars setting a record price for a Third Growth property. Suravenir Assurance is involved in banking and life insurance.

The large deal for the holdings of Chateau Calon Segur included 94 hectares of land, of which 82 hectares are planted to Cabernet Sauvignon, Merlot and Cabernet Franc. The transaction encompassed not only Chateau Calon Segur, but also the families Cru Bourgeois estate, Chateau Capbern-Gasqueton. Calon Segur produces on average close to 20,000 cases of wine per year.

Insurance companies continue taking a bigger position in Bordeaux. AXA has the largest holdings in the region with Pichon Baron in Pauillac, Petit Village in Pomerol and Suduiraut in Sauternes. In 2011, shortly after Fete de la Fleur, Chateau Lascombes in Margaux sold for almost $300,000,000 to La Mutuelle, “MACSF” (Mutuelle d assurance des services de sante francais). Generali France owns Chateau La Pointe in Pomerol and Allianz France controls Chateau Larose Trintaudon. Other Bordeaux Chateaux are owned by Insurance companies and banking firms. At 170 Million Euros, this could end up being the largest transaction of the year in Bordeaux.

Jean-Francois Moueix, the owner of the most famous and incredibly expensive wine of Pomerol, Petrus, as well as the massive Bordeaux negociant firm Duclot, took a minority position in Chateau Calon Segur. Jean-Francois Moueix helped broker another deal in St. Estephe when he assisted the sale of Chateau Montrose to the Bouygues brothers in 2006.

While Chateau Calon Segur has a long history in the St. Estephe appellation, the modern era for Calon Segur began in 1894 when it was purchased by Georges Gasqueton and Charles Hanappier. Most recently, the figurehead of Calon Segur was the charming, albeit eccentric Madame Denise Gasqueton. She ran the estate while marching to the beat of her own drummer until she passed away at the age of 87 in late September, 2011.

It will be interesting to see what happens with the wines and wine making at Chateau Calon Segur with its new owners. One thing you can take to the bank, prices are going to rise and I imagine quality will increase as well.

[DavidG]

Interesting report Jeff. Perhaps another Chateau that will price itself out of my market?

[JimHow]

Just another reason why I buy very little Bordeaux anymore.

[JScott]

This always struck me as an estate that made good wine out of great potential. Betting there will be an overnight change in character and quality with new ownership. And of course new pricing to go along with it.....

[Chasse-Spleen]

There is no reason to imagine the wine will be improved in any way. Only different. It is already fantastic.

[DavidG]

I suspect there will be winemaking changes with the new ownership. If there are, the only certain thing is that some will like them, others will not.

[AlexR]

I was at Calon Ségur in April.

A concerted effort is already under way to soften the wine and make it less unyielding in its youth.

The 2011 was a step in that direction.

The château has always kept a low profile until now, underplaying its potential and not kowtowing to journalists.
I predict it will gain in media coverage, reputation and, yes, price in the next few years...

Best regards,
Alex R.

[Chateau Vin]

Just another reason why I buy very little Bordeaux anymore.

May be its time to hoard older vintages of CS as much as possible I guess...

Jim, please check your PM...

[Houndsong]

I wonder what Johnny Depp thinks about this.

[Michael-P]

Hound:

Depp?

Michael-P

[Bacchus]

Johnny Depp: http://www.people.com/people/gallery/0, ... 56,00.html

[Houndsong]

Michael, Alex posted a piece a while back in which Depp said Calon was his favorite daily drinker.

[AlexR]

LOL

AR

PS: Just announced his separation from Vanessa Pardis.

[Chasse-Spleen]

If you can drink Calon Segur every day, even Vanessa Paradis might get boring. But not for me